Toolkit: Simple Book Keeping and Costing for SMEs in Footwear Making - Common Market for Easter and Southern Africa Leather and Leather Products Institute

This document is a facilitator’s guide for training small and medium-sized footwear enterprises in basic financial management, focusing on simple bookkeeping and costing to support day-to-day business decisions. It explains that bookkeeping involves recording all money entering and leaving the business, emphasizes separating business and household finances, and introduces practical record-keeping through a simple cash book with income and expenditure entries. It then defines income, profit, and loss, and outlines how to calculate profit or loss using recorded materials, services, wages, and repair or replacement costs. Finally, it introduces costing and pricing, including overheads and a footwear costing model that combines direct materials, labour, overhead, depreciation, rejects, and sales costs to derive production cost, margin, and selling price